Comment Give it away for free (Score 3, Insightful) 330
To be honest, I don't understand why Microsoft doesn't just give away Windows for free as a loss leader. It sounds like they're headed toward selling software via the Microsoft store a la Apple's app store and Google Play, in which case they'll be getting a cut of all software sales. I can understand selling some kind of "business connectivity" package that contains the domain connectivity bits that companies require at a premium. They're even getting into the hardware retail business, as well as hammering hard on search (thus data mining and advertising), online services, console gaming, etc.
With their main operating system competitors a company that sells its OS as part of its hardware package (Apple) and a loose conglomerate developers that give away their operating system--and most of their productivity software--completely free (as in speech and beer), it just seems like it would be a smart move by Microsoft to completely embrace its alternative revenue streams and make a play to get legal copies of its core OS--and its connectivity to its software store where the real money is now--on every desktop, laptop, and tablet in the world. How many users, presented with the option of buying the MacOS upgrades for $20 or $25 a pop, would be mighty tempted to install Windows 8 on their Macs for free instead, especially if they know they won't have to pay for any more MacOS or Windows upgrades down the line? Microsoft could very well steal a chunk of market share from Apple on their own hardware.
The most frequent justification I see from Linux users (myself included) for using Linux is, "You never have to pay for upgrades to get the latest and greatest version again." Yeah, the free software is nice, but you can get free software (many times the exact same software--Firefox, LibreOffice, GIMP, Audacity, etc.) for Windows. Yeah, the principles behind open source are admirable--and make no mistake, I would continue to support them--but most average schmoes really couldn't care less that they can download and compile their own OS source code, and wouldn't have a clue how to go about it even if they did care.
From a purely business standpoint, I really think that giving Windows away for free is the best long-term strategy for Microsoft, and it would be perceived as a bold and welcome move by the industry as well as draw in a bunch more users who would then earn Microsoft money via software sales, advertising, and online services.